The economic situation in Victorian has become a serious problem for businesses across all sectors. While the most visible industries to be impacted are within the hospitiality sector it is unlikely that any business will make it through this pandemic unscathed.
Thankfully the Federal and Victorian Government have acknowledge the scale at which businesses are being impacted and have started to release stimulus packages in an attempt to boost business cashflow and keep employees in jobs during this crisis.
Premier Daniel Andrews and Treasurer Tim Pallas today announced a $1.7 billion economic survival and jobs package, which has been developed following discussions at National Cabinet and complements the work of the Federal Government.
Payments will start flowing next week and will save eligible business up to $113,975 a year, with businesses saving an average of $23,000. These businesses employ around 400,000 workers. This assistance is a refund, not a loan.
The same businesses will also be able to defer any payroll tax for the first three months of the 2020/21 financial year until 1 January 2021, freeing up a further $83 million in cashflow.
Commercial tenants in government buildings can apply for rent relief – a move private landlords are also being encouraged to undertake – and 2020 land tax payments will be deferred for eligible small businesses.
The Government have also acknowledge specifically the sectors dramatically hit, such as the hospitality, creating a $500 million "Working for Victoria Fund in consultation with the Victorian Trades Council and Victorian Council of Social Services. This support will definitely help businesses these businesses stay afloat, however these businesses rely heavily on casual employees, who will have seen their normal work hours disappear, as a result the government will also facilitate job matching to help Victorians.
“We’ve listened to business and workers and now we’re taking unique and unprecedented action to help businesses and their workers through this crisis.” acknowledge Victorian Premier Daniel Andrews.
“Cash is better in the hands of struggling businesses than in a Government bank account right now – Victorian workers need us to step up to help get them through”
This first step from the government has been welcomed by businesses across the state and more support may be on the cards as noted by Treasurer Tim Pallas.
“This is the first of many announcements we will make to help Victorian businesses survive and keep people in work.”“We’re working in lock-step with the Federal Government to make sure our support complements their work as we weather this unprecedented global economic storm.”
As a Victorian based business, Digital First Australia welcome the support from Government and these stimulus packages will help ease cashflow. Our team are doing our best to track the progress and support being announced and will regularly update our site with information as it becomes available. If you would like to read the most up to date information please see this page.